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Term Life Insurance : FAQs
Why should I use Zander vs. other alternatives?
Zander provides a balance of size, experience and commitment to excellent service that is unique in our industry. We are large enough to command the attention and accountability of the companies we represent, which helps assure that our clients receive the most competitive pricing and prompt attention to any issues that may arise. Our size, however, does not interfere with our effort to provide personalized service throughout our business relationship. Whether you have questions prior to applying, concerns during the application process, or need assistance once your policy is in effect, we are here to serve you!
What type of policies are included in the proposals you sent me?
Zander Insurance only provides quotes for level term life insurance coverage. All products can be quoted on a 10, 15, 20, and 30-year basis, and the premiums are guaranteed for the duration you choose. While most of the policies are renewable to age 95, the annual premiums may increase significantly after the initial guaranteed period expires and, in addition, most of the policies are convertible to permanent life insurance policies. We present all policies for your review so you can determine the best option.
I have never heard of the company recommended. Should I still consider their policy?
All carriers that we represent are top quality carriers with AM Best ratings of A-, A, A+, or A++. These are considered to be “excellent” or “superior” ratings, and signify their strong ability to meet the ongoing obligations to policyholders. The ratings reflect the opinion of AM Best and are not implied warranties of the companies’ ability to meet their financial obligations. Though you may not be familiar with a company’s name, we have the greatest confidence in the carriers we recommend and are proud to represent them.
Is price the only thing I should be concerned with?
With term life insurance there is no cash value, dividends, loans, investment options, etc. to be concerned with. Look for a guaranteed level product from a carrier with strong financial ratings. Remember, when comparing an older policy to a new one, the number of additional years the premium is guaranteed into the future may represent an enhancement of value.
How much coverage do I need?
When determining the amount of coverage you should have, a review of your personal circumstances is necessary. A more simplified approach includes calculations based on a multiple of your income. A level generally recommended is ten to twelve times your income, though you could need less depending on your personal financial situation. Paying off your mortgage or other debts, savings in excess of your retirement plans, a spouse’s continued income, and having adult dependents are all circumstances that can help reduce the necessary amount of insurance your family may need. Don’t hesitate to contact us to talk more about your specific needs.
Will I always receive the price quoted from the carrier I apply to?
Not necessarily. Each company has certain underwriting guidelines that you must meet to qualify for the rate class at which you were quoted. The guidelines are similar with most companies, but certain carriers are more flexible than others, and have specific underwriting niches. The areas reviewed by the carrier include: medical history, height, weight, cholesterol, driving record, family history of heart disease/cancer, hazardous sports, etc. We make every effort to provide you the most accurate and realistic quote based on the personal details you provide at the time of the quote, whether it was via the web or through a call to one of our Zander Guides. If you do not receive the same rate you were quoted, the company will explain what factors changed the outcome and generally offer an alternative. You may accept it or decline it. There is no cost to you should you decide to decline.
Is a medical exam required?
A basic paramedical exam is required for most term life products, though there are some that do not based on the applicant’s age and the amount for which they apply. The exam is very simple and takes approximately 15-20 minutes. The examiner will typically request a blood and urine specimen, take your blood pressure and ask questions concerning your medical history. Examiners are not licensed insurance agents and are unable to assist with questions regarding your application. Please don’t hesitate to contact us with any questions or concerns.
What payment plans are available?
The premiums quoted are on an annual basis. Other premium options include monthly, quarterly, and semi-annually. Monthly payments can only be made via electronic fund transfer. Most companies charge an additional fee when premiums are paid more frequently than annually.
How long does the application process take?
Once we receive your application and the paramedical exam has been done, approvals typically occur 4-6 weeks. That timeframe can be longer if scheduling your medical exam is delayed or if medical records must be ordered from your doctor. Let us know of any special time limitations and never cancel your existing policy until you are approved and have reviewed your new policy.
Are Zander and the insurance carriers presented licensed to do business in my state?
Yes! Our rating program determines the best value available in your state, and Jeffrey J Zander is licensed in all states where business is conducted.
Should I cancel my current coverage when I apply to one of the companies Zander represents?
Absolutely not. Coverage is not in force until approved by the carrier, you accept the policy, and payment is made. You should not cancel your existing policy until your new policy has been activated. Please remember that if you are replacing an existing policy, the suicide and contestability periods of the new policy will still apply. Also, if you plan to discontinue a cash value type policy, you may incur surrender charges and/or have tax consequences. Your financial planner, legal counsel, or current insurance agent should be consulted.
What is the quickest way to get my coverage in force?
There are several things you can do to help expedite the application process. Using our website to apply helps reduce processing time. Be sure to include your email address, which helps us promptly contact you with any additional information requests. Also, a thorough explanation of all “yes” answers on your application, prompt scheduling of your paramedical exam, and a listing of the full name and address of all your physicians will help quicken the underwriting process.
What is a conditional receipt?
For those who want coverage in effect at the time of application, under certain limitations, companies will extend conditional coverage based on the terms outlined in their “conditional receipt.” The terms must be complied with prior to conditional coverage, so careful review is imperative if selecting this option. All conditional receipts maintain limits on the amount of coverage conditionally provided and the length of time it is in force. Those using this alternative typically have no other coverage in force and have an immediate need for some form of protection . . . even if limited.